I N S T I T U T E O F B U S I N E S S M A N A G E M E N T

MARKETING MANAGEMENT

TERM REPORT

FALL 2011

SUBMITTED TO:

Saamena Hasasn

Instructor, Marketing Management

IoBM, Institute of Business Management

SUBMITTED BY:

Omer Mohammad Khan

Uzair Jangda

Hamza Tanveer

Dated: December 15, 2011

ACKNOWLEDGEMENT

With the esteem depth of our heart, we are thankful to the

INSTITUTE OF BUSINESS MANAGEMENT, and our

Marketing Management instructor, SAAMENA HASSAN that she

provided us an opportunity to have a practical of all that we have

studied in the course.

We have tried to accomplish the report assigned by the

instructor to the best of our abilities, but still there might be a

number of problems in the report that would be removed only with

the guidance of our course instructor. We welcome and appreciate

the error picking and suggestions from the side of our instructor.

TABLE OF CONTENTSACKNOWLEDGEMENT...........................................................................................................................................2EXECUTIVE SUMMARY.................................................................................................................................................5

BACKGROUND OF ENGRO CORP..................................................................................................................................7

ENGRO’S BUSINESSES..................................................................................................................................................9

Engro Foods Limited (EFL):......................................................................................................................9

Engro Energy (EEL):..................................................................................................................................9

Engro Innovative Automation Pvt Ltd (EIAL):...........................................................................................9

Engro Polymer and Chemical Limited (EPCL):........................................................................................10

Engro Vopak Terminal Limited (EVPL):..................................................................................................10

EEPL: Engro Eximp Pvt Ltd.....................................................................................................................10

ENGRO FOODS LIMITED - THE COMPANY....................................................................................................11

ENGRO FOOD’S VISION..............................................................................................................................................12

ENGRO FOOD’S CORE VALUES...................................................................................................................................12

ENGRO FOOD’S DEPARTMENTS.................................................................................................................................13

1. Administration...................................................................................................................................13

2. Finance and Accounts........................................................................................................................13

3. Human Resource...............................................................................................................................13

4. Marketing..........................................................................................................................................13

5. Milk Procurement..............................................................................................................................14

6. MIS.....................................................................................................................................................14

7. Production.........................................................................................................................................14

8. Quality Assurance..............................................................................................................................14

9. Supply and Distribution.....................................................................................................................14

ENGRO FOOD’S BUSINESS SEGMENTS........................................................................................................15

PROCESSED MILK – AN EVER GROWING SEGMENT.............................................................15

AMBIENT UHT MILK.........................................................................................................................15

POWDER MILK..................................................................................................................................15

JUICES..................................................................................................................................................15

ICE CREAM.........................................................................................................................................15

RICE BUSINESS.................................................................................................................................16

GLOBAL BUSINESS UNIT – AL SAFA..........................................................................................16

ENGRO FOOD’S BRANDS............................................................................................................................................17

Marketing Research conducted by ENGRO Foods......................................................................................................18

Segmenting Targeting and Positioning for Olpers......................................................................................................20

Segmenting and targeting the market for Olper’s.................................................................................20

Demographic segmentation..................................................................................................................20

Psychographic segmentation.................................................................................................................20

Behavioral segmentation.......................................................................................................................21

Positioning for Olpers................................................................................................................................................22

SWOT Analysis...........................................................................................................................................................23

MACROENVIRONMENT..............................................................................................................................................29

Economic Factors...................................................................................................................................29

Socio-Cultural Factors............................................................................................................................29

Technological Factors............................................................................................................................30

a) Farm Cooling Tanks Loan Scheme.................................................................................................................31

b) Model Farms.................................................................................................................................................31

c) Other Policy Interventions.............................................................................................................................31

PRODUCT...................................................................................................................................................................32

PLACEMENT & DISTRIBUTION....................................................................................................................................33

PRICE..........................................................................................................................................................................35

PROMOTION & ADVERTISING....................................................................................................................................36

COMPETITOR.............................................................................................................................................................38

Products.......................................................................................................................................................38

Quality..........................................................................................................................................................38

Expertise.....................................................................................................................................................38

Competitors & their Market Share........................................................................................................39

BUILDING LOYALTY....................................................................................................................................................39

MARKETING STRATEGIES ADOPTED...........................................................................................................................40

EFFECTS OF MARKETING............................................................................................................................................41

MARKETING OBJECTIVES............................................................................................................................................43

Need Satisfying......................................................................................................................................43

Long & Short Term Sales Target............................................................................................................43

SUGGESSTIONS..........................................................................................................................................................44

CONCLUSION.............................................................................................................................................................45

REFERNCES.................................................................................................................................................................46

APENDIX.....................................................................................................................................................................47

QUESTIONAIRE...........................................................................................................................................................48

EXECUTIVE SUMMARY

This report comprises of a marketing audit conducted on Engro Foods. The

report discusses how ENGRO Corp came up with the idea of adding a new

product line to their already well established and long set of product. The

report commences with a brief history about Engro Foods and how it came

into existence. It also talks about its mission statement and the vision of

Engro Foods followed by information about the different segments and

brands that constitute Engro Foods. The report discuss the types of

marketing research conducted by the company before entering into the

market and how Engro Foods has segmented its target market and

positioned its product in the minds of the consumers. A detailed SWOT

analysis has been done in which the strengths, weaknesses, opportunities,

and threats the organization is facing have been discussed. The report

further talks about a variety of marketing strategies employed at different

stages of the product life cycle, that is promoting the brands and making

consumers aware of Engro Food’s products, using the 4 P’s of the marketing

mix. The report also confers about the role of brand equity played in

increasing the sales for Engro Foods. It also explains how effective

advertising and promotion by the company has lead to an increase in

Engro’s market share. The report also gives suggestions to the company as

how to grow their market share and become the market leaders in their

respective business segments. The report ends with a brief conclusion of

how Engro Foods since its inception has grown into a market challenger for

its competitors.

BACKGROUND OF ENGRO CORP

Search for oil by Pak Stanvac, an Esso/Mobil joint venture in 1957, led to the discovery of Mari gas field situated near Daharki -- a small town in upper Sindh province. Esso was the first to study this development in detail and propose the establishment of a urea plant in that area.

The proposal was approved by the government in 1964, which led to a fertilizer plant agreement signed in December that year. Subsequently in 1965, the Esso Pakistan Fertilizer Company Limited was incorporated, with 75% of the shares owned by Esso and 25% by the general public. The construction of a urea plant commenced at Daharki the following year with the annual capacity of 173,000 tons and production commenced in 1968. At US $ 43 million, it was the single largest foreign investment by a Multinational Company in the country.

A full-fledged marketing organization was established which undertook agronomic programs to educate the farmers of Pakistan. As the nation’s first fertilizer brand, Engro (then Esso) helped modernize traditional farming practices to boost farm yields, directly impacting the quality of life not only for farmers and their families, but for the community at large. As a result of these efforts, consumption of fertilizers increased in Pakistan, paving the way for the Company’s branded urea called "Engro", an acronym for "Energy for Growth".

As part of an international name change program, Esso became Exxon in 1978 and the company was renamed Exxon Chemical Pakistan Limited. The company continued to prosper as it relentlessly pursued productivity gains and strived to attain professional excellence.

In 1991, Exxon decided to divest its fertilizer business on a global basis. The employees of Exxon Chemical Pakistan Limited, in partnership with leading international and local financial institutions bought out Exxon’s 75 percent equity. This was at the time and perhaps still is the most successful employee buy-out in the corporate history of Pakistan. Renamed as Engro Chemical Pakistan Limited, the Company has gone from strength to strength, reflected in its consistent financial performance, growth of the core fertilizer business and diversification into other fields.

Investment in people, process solutions and resource conservation initiatives have reduced energy use per ton of urea by a third, whilst increasing urea production nearly six-fold since 1968. Not only does this save money, it stretches non-renewable energy sources and mitigates the impact of waste. Along the way, a major milestone in plant capacity upgrade coincided with the employee led buy-out; innovatively optimizing our resources, Engro re-located fertilizer manufacturing plants from the UK and US to its Daharki plant site – an international first. Our pioneering spirit continues in our social investments, exemplified by the only snake-bite treatment facility in the Ghotki region and the first telemedicine intervention in the country.

ENGRO’S BUSINESSES

Engro Foods Limited (EFL):

ENGRO FOODS LIMITED is the 100% owned subsidiary of ENGRO. The company's milk production capacity is 700k litters per day. Moreover an investment plan of $ 3.4 billion in Engro Foods has been approved by the board for: expanding UHT capacity to 900k litre per day, expanding milk powder capacity to 70 kilo per day, import of 1000 cows and an ice cream plant. The company is all set for growth as the milk business profitability is increasing due to increasing consumption of milk and increasing prices of dairy products. Besides selling milk, the company also sells the company also sells related products such as creams and unbranded products such as ghee, and recently introduced a milk whitener; namely "Tarang". Currently, the company is incurring losses due to expansionary activities.

The value of the ENGRO FOODS LIMITED is Rs.36 in total subsidiaries value of 63.4.

Engro Energy (EEL):

ECPL holds 100% equity of EEL. The plant started its production in 2009. The plant has production capacity of 217 MW is located at Qadirpur (Ghotki District). The plant will cost US $ 205 m; of which 75% is to be raised through offshore debt financing while rest to be raised through an equity issue.

The value of the EEL is Rs.10.7 in total subsidiaries value of 63.4.

Engro Innovative Automation Pvt Ltd (EIAL):

ECPL holds 63% of EIAL. The core business of EIAL is to provide process control solutions to leading industrial units. During CY07, the company has acquired 70% stake in a US based Automation and Engineering company named Advanced Automation LP (AALP).

Engro Polymer and Chemical Limited (EPCL):

EPCL is a joint venture between Engro Chemicals and Mitsubishi Corporation of Japan. EPCL's facility is designed to produce 100k tones of PVC resins; the plant is located at Port Qasim. The company is going through expansion of PVC manufacturing capacity after which the production capacity will increase to 150k tpa. The plant is being setup at a cost of $220 mn and was completed by 1H-CY09. For financing purposes ECPL injected equity worth Rs. 1.5 bn. The designed facility will also be able to produce additional intermediary products and caustic soda.

The company is showing increasingly high numbers in its bottom line and it's a great source of dividend revenue for ECPL. The company paid a dividend of Rs. 229 million in CY07.

Engro Vopak Terminal Limited (EVPL):

It is a joint venture with Royal Vopak of Netherlands. Engro holds 50% of equity. The core business of the company is storage and handling of chemicals. The EngroVopak has entered into an agreement with EPCL for ethylene storage services, and plans to construct first cryogenic storage facility, which would cost $ 30 mn. All the financing will be raised from debt issue.

The company paid a dividend per share of Rs. 5 in CY07. The profit of the company is expected to grow by 18-20% and the company is expected to maintain a payout of 92% going forward. The value of the EVPL is Rs.11 in total subsidiaries’ value of 156.5.

EEPL: Engro Eximp Pvt Ltd.

EEPL holds 100% equity of EngroEximp. EngroEximp deals in the business of imported fertilizer The Company offers value to ECPL as the company gets imported fertiliser at less cost than it would have to bear otherwise. The imported fertiliser demand is expected to continue at a growth rate of 30% till 2010 and after that import of fertiliser will be almost zero as the capacity expansion of 1.8 mtpa by Fatima Fertiliser and Engro Chemical Pakistan will become operational by 2011.

ENGRO FOODS LIMITED - THE COMPANY

Engro Foods Limited was formed as a wholly owned subsidiary of ECorp in 2005. The Company started operations in 2006 and has become a major player in the Food Industry of Pakistan in a span of 5 years. Within this period, Engro foods Supply Chain (Pvt) Limited was created to look after the supply chain of the business. Engro Foods has attained market leadership in Ultra High Temperature (UHT) Industry at the end of 2010 and has launched multiple new products including Ice Cream, Flavored Milk,

Fruit Juices and Milk Powders, that show great potential for future.

To support these brands and their highest standards of quality, E Foods has invested heavily in milk processing and milk collection infrastructure. In addition, the Company has innovated by venturing out of the dairy sector and stepping in the Beverage Industry by launching Olfrute and ice cream industry by launching Omoré.

The Company is also entering into international markets. Its first venture is to manage a Halal food business in North America known as Al-Safa , which was recently acquired by E Corp.

ENGRO FOOD’S VISION

"Our vision is to become a fast expanding mega foods company. To achieve our vision, the company will initially focus on dairy by investing a substantial

amount in plant, milk collection capability and marketing. We are making concrete efforts to expand in and beyond Pakistan; through strategic

international alliances, to eventually become global."

ENGRO FOOD’S CORE VALUES

1. Leadership 2. Innovation 3. Diversity and International focus 4. Quality and continuous Improvement 5. Candid and open communications 6. Individual growth and development 7. Enthusiastic pursuit of profit 8. Ethics and integrity 9. Safety, Health and Environment

ENGRO FOOD’S DEPARTMENTS

1. Administration

Efficient management of all administrative affairs of Engro Foods (Pvt.) Limited is the job of the Administration department. From legal matters to general day-to-day operations of the office, the Administration department ensures that all affairs run smoothly.

2. Finance and Accounts

The Finance and Accounting departments at Engro Foods are responsible for the total financial management of the different businesses of the company. From the usual accounting statements and sheets to risk and portfolio management, the team ensures that every rupee coming into and out of the Companies' pockets is properly documented and audited.

3. Human Resource

The Human Resource department at Engro Foods (Pvt.) Limited spearheads the recruitment process to ensure that the finest human resource is taken on board at Engro Foods. Resumes of candidates are carefully filed and documented for current or future reference. The department, besides carrying out succession planning, maintains and implements HR policies pertaining to employment, retention and superannuation. Assessing training needs of employees and ensuring adequate training is also carried out by the professional HR team at Engro Foods.

4. Marketing

Consisting of leading marketing professionals of the industry, who are graduates of top business schools of Pakistan, the Marketing Department ensures that from product need identification to product development, launch and post-launch, all strategic decisions are made based on authentic information and research. Identifying the target markets, effectively communicating to them and building the image of the brands as well as the Companies, is the job of the professionals running the marketing at Engro Foods.

5. Milk Procurement

As all of our products are milk based, the entire Milk Procurement department plays a critical role in defining the quality of the end product that reaches our customers. Ensuring regular collection of fresh and pure milk right from the farmer to the factory and ascertaining the freshness of milk all across the milk procurement process, is the responsibility of Milk Procurement department, consisting of food technologists working at the collection centers and veterinary doctors providing service to the farmers.

6. MIS

The MIS department at Engro Foods ensures that all automation is running error-free at all times. Regularly modifying and updating the Company's accounting software is also the MIS team's responsibility.

7. Production

Modern technology is part and parcel of Production at Engro Foods. The state-of-the-art plant set up near Sukkhar has a processing capacity of more than 300,000 litres of milk per day, making it one of the largest in the country. Professionally qualified human resource efficiently works night and day to maintain highest hygiene standards.

8. Quality Assurance

Quality Assurance is strictly followed in Engro Foods. Qualified food technologists at this department ensure that highest quality parameters are adhered to through all steps of production and that the products reach the consumers as per promise.

9. Supply and Distribution

This department ensures timely and effective distribution of the products to different shops and stores spread all across Pakistan. From transportation management to obtaining route permits and approvals, is done by this department.

ENGRO FOOD’S BUSINESS SEGMENTS

PROCESSED MILK – AN EVER GROWING SEGMENT Engro Foods business started with the processed milk segment which they currently dominate in terms of market share (39%), overtaking Nestlé in 2010. This segment offers a great opportunity for growth as it constitutes a mere 7% (1.4bn litres) of the total trade-able milk. A further break up of the segment reveals that only a 4% of the total processed milk is used in the Ambient UHT milk segment, 2.6% in Powder and the rest in Chilled Dairy.

AMBIENT UHT MILKThis section mainly comprises of Engro Foods (Olpers, Tarang, Owsum and Olper’s cream) and Nestlé constituting ~71% of the total market share. Engro Foods currently lead the market with a share of 39% with strong growths coming in from Tarang and Olpers.

POWDER MILKEngro Foods entered the whitening powder business in mid 2010 and gained a single ppt of market share during the year. Nestlé currently dominates the market, however aggressive advertisement campaign by Engro Foods on this front can create a niche market for Tarang Powder as in the case of liquid tea whitener. More so, the company also plans to enter the growing up powder milk business which is currently dominated by Nido (Nestlé).

JUICESOlfrute juices were launched in mid May 2010 and the company currently faces strong competition from Nestlé (already a market giant with 66% share) and Shezan (19% market share). With the help of its strong marketing chain, the company is well positioned to make inroads into the juices and nectar market. Furthermore, rising health awareness among the urban population can trigger a growth potential in this sector.

ICE CREAM Omore (Engro Foods ice cream brand) - since its launch in 2009 – has been able to deeply penetrate into the market and achieve a commendable market share of 17%. Omore’s launch in Karachi (the biggest ice cream market accounting of 23%

of the total market demand) was delayed due to pure dairy nature of the ice cream. Nevertheless, Omore was finally launched in the city during the current year which saw its revenue soaring by 96% in 1Q2011. The brand is still in its development stage and efforts are being made by the company to establish its brand loyalty through heavy marketing expenditures. That is why the segment has still been in losses so far. Going forward, we expect the segment’s revenues to witness a 4 year (2011-15) CAGR of 17% and to post profits from next year.

RICE BUSINESSAs per the latest numbers released in the economic survey, rice accounts for 0.9% of the GDP and is amongst the major crops being sown in Pakistan. Pakistan is one of the largest exporters of rice with the most popular type being Basmati. With ENGRO’s vision of tapping the international market, Engro Foods has set up a rice plant through EFSC to refine and process rice for Engro Eximp. The plant has an initial processing capacity of 28k tons which is expected to double in 2011. EFSC has a ‘Take or Pay’ agreement with Engro Eximp for rice export and a guaranteed 18% IRR on assets while risks will be borne by Engro Eximp.

GLOBAL BUSINESS UNIT – AL SAFA Continuing with a global vision, ENGRO has acquired Al Safa at an acquisition price of US$6.3mn. Due to SBP’s terms and conditions the ownership remains under ENGRO which eventually be transferred to Engro Foods at cost. Al Safa is the oldest Halal meat brand in North America and the company aims to target Muslim population through Halal and Ethnic Food segments. This can further broaden the aspects of the company to establish itself in the international market.

ENGRO FOOD’S BRANDS

Olper’s milk

Olper’s cream

Olwell

Tarang

Omore’

Marketing Research conducted by ENGRO Foods

Marketing research is an important step when a new product is to be launched into the market. There are many risks associated with that new product and especially when a company decides to diversify into a completely new market that it was not previously catering to. Thus in order to reduce the magnitude of the risks and to be successful, large organizations with a research and development department conducts the marketing research. Even those organizations that do not have a R&D department can conduct marketing research through other companies that are providing the facility of marketing research.

One such company is A.C Nielson that carried out the marketing research for ENGRO foods when the idea of diversifying into a new market was introduced. Marketing research is the systematic design, collection, analysis and reporting of data to the relevant parties. ENGRO wanted to setup a new fertilization plant but due to certain constraints from the government wasn’t able to do so. Therefore, the organization decided to move into a new market. They came up with several options including telecommunications and power plant but they found out that the food industry held the greatest promise. It was an exploratory research that is the main goal was to shed light on the real nature of the problem in this case, diversification into a new market, and to select possible new solutions and ideas such as the food industry. They also went though the list of at least 1,200 names before they decided to introduce Olper’s.

Olper’s is promoted as the milk for all-purposes. The reason for this is that while conducting research, they found out that people want milk that could be used for all purposes such as drinking, tea whiteners etc. Once the brand was introduced the organization wanted to add more product lines to it. Therefore they conducted another marketing research to find out the success of Olper’s. The researchers started off with secondary data that was available. They tried to uncover the level of complexity involved in such a decision and the magnitude of success. But that wasn’t enough so they started to collect primary data through the use of different techniques. The first started with survey research to understand the people’s beliefs, preferences and core needs that can be satisfied by introducing additional products. The researchers also conducted observational research to observe the people in different settings. They used it to find out which brand the people really bought, where did they take more time in purchase process and where did they look when they were shopping for grocery. This helped them to see the shelf-space that can be used. They used the method of shadowing that is they observed people while using the product. They also conducted unfocused groups where they interviewed a diverse set of people to explore ideas about the brand and what more they want in the food sector to be available to people. The researchers conducted questionnaires to find the responses of consumers about Olper’s.

They got a positive feedback from the customers who also encouraged them to invest further and to setup a new plant in Sahiwal. Through different research methods the organization was also able to find out the number of loyal of competitors’ brands. Once all the information has been collected, it is further analyzed to extract findings from the data. The researchers used all types of statistical methods such as frequency distribution to now the number of people buying the brand, average and measures of dispersions for major variables. They also applied some decision models for additional findings.

After the analysis of data researchers present the findings to the decision makers who pass the final verdict. Due to the positive responses of consumers, the decision makers decided to go ahead with the idea of introducing more product lines to the food Olper’s brand. It can be said that successful marketing research helps the marketers to understand the costumers’ needs that are still unfulfilled. The two new products of Olper’s in the market are Olwell diet milk and Olper’s cream.

Segmenting Targeting and Positioning for Olpers

Segmenting and targeting the market for Olper’s

It is difficult for any one company to engage in mass production, mass distribution and mass promotion for its product. The complexities arise from the proliferation of advertising and distribution channels and the high costs associated with reaching a mass audience. Therefore, companies segment the market so that they can target the group of customers who share similar needs and wants. The milk sector shows a market that has homogeneous preferences that is the consumers have similar preferences. They want milk to be white, carefully processed, and good for health and bones. Keeping these things in mind Olper’s market has been segmented. The marketers at Olper’s have had a number of options available to them when segmenting the market for their products. So far company has introduced three new products: Olper’s milk, Olwell diet milk and Olper’s cream.

Demographic segmentation

Olper’s is not bounded to any particular age, gender or lifecycle stage. The brand is meant for all the users in higher upper or middle class families. Even though the brand calls for a small percentage of an individual’s income but lower class wouldn’t want to buy the brand maybe because they are price sensitive or because they believe lose milk is better than processed milk and has all the nutrients that the processed milk lacks. However all the companies in the milk sector are trying to change the image of processed milk as non-nutritionist milk. Therefore it can be said that Olper’s has been positioned as a brand for high income earners. Due to the income factor involved it can be said that Olper’s milk target a specific social class who are health conscious and concerned.

Psychographic segmentation

On the basis of psychographics, factors such as personality traits, lifestyles and values, the marketers at Olper’s have segmented the market more towards achievers who are goal-oriented and focused on their careers, and experiencers those who are seeking variety in the milk sector. For example the ads for Olwell mostly show achievers who want to be successful, have high aims and are already doing quite well in their concerned fields. The Olper’s products have targeted experiencers because the company has

given them a new set of brand and so many will make their first purchase because they want to try something new. Olper’s ads also target believers, traditional conservative people with concrete beliefs. The ads for Olper’s show the beliefs of healthy life with processed milk and plays on the emotional aspect more.

Behavioral segmentation

Olper’s products have been segmented on the basis of benefits that consumers seek in the milk. In this case, people look for a brand that can be used for all purposes from drinking to tea whiteners as well to feed the animals. The ads also show that consumers should increase their milk consumption for example with every tea they should use Olper’s, every morning they should drink Olper’s and everyday they should feed their pets with Olper’s milk. There may be some hard core loyal in the milk sector. Loyalty maybe towards such established brands as Nestle and Haleeb. There might even be switchers and shifting loyal in the milk sectors that are either price sensitive or want variety. As a result, the marketers need to find ways to make the hard core loyal attracted to the Olper’s brand and shifting loyal and switchers to convert into hard core loyal as well.

Positioning for Olpers

Positioning involves designing the product and image that will occupy a distinctive place in the minds of the target market. As can be seen, nestle milkpak and Haleeb have the largest profit margins and market share in the milk industry. Thus the marketers at Olper’s have decided to create its own unique image and then strengthen the position in the customers’ minds. They have done this by taking a number of following steps:

1. Packaging of Olper’s milk and Olwell in red color and Olper’s cream packed in purple color are quite different and distinctive from the typical green and blue packing used by other competitors. 2. The brand has been positioned as an all purpose milk that is meant for everyone, especially for those who live life to the fullest, hence its tag line, “jodilkholkayjeetayhainunheenkayliyayhaiOlper’s”

Olper’s always tries to create customer intimacy that is it focuses on satisfying the customers’ unmet needs. Processed milk is seen as less lacking all the nutritions that are part of milk due to passing through so many processes. But Olper’s positions itself as milk that has not lost its nutrients. The unique selling proposition for Olper’s is: SubahBakhairZindagi, but recently the company changed the USP to: Jo dilkholkayjeetayhainunheenkayliyayhaiOlper’s. Both the tag lines have a very positive impact on Olper’s image because of the emotions involved in both the lines. The marketers have used different positioning for Olper’s products:

a. They have used the attribute positioning for Olper’s milk. The main theme of the product is that it is meant for all purposes without any user imagery. Olper’s ads also show attributes of milk such as good for health.

b. They used the benefit positioning for Olwell. The product is positioned as delivering the benefit of helping to reduce weight and for healthy bones.

c. Olper’s cream is positioned as good for a specific use or application. In this case the cream can be used to make cake icings and desserts look great.

It can be said that all the different stages have been performed by the marketers with extreme care and research.

SWOT Analysis

1.Engro’s Brand Name Olper’s is a brand of ENGRO foods. This means that consumers can relate their former image of ENGRO foods to Olper’s. ENGRO is a well established brand name in Fertilizer, IT and infrastructure business. The brand is well known so customers will automatically have a brand association with Olper’s and see it as a premium quality product. ENGRO is world renowned so it can easily attract foreign investors in backing it against other competitors such as Nestle. ENGRO foods can easily afford research and development costs for Olper’s have in order to introduce new products. It can also distribute the brand through better channels because of its long term relationship with distributors in the agriculture sector.

2. PR with farmersENGRO has been interacting with the farmers for fertilizers and has gained quite a good reputation over the years. It has led to a strong bond and long term relationship with the farmers who are willing to supply milk to the company. This is an added advantage and strength for the company because it will never be short of milk production. The farmers also won’t have to look elsewhere to sell their milk.

3. Positive response from customers In first year, EFL crossed 1.4 billion sales figure which shows customers’ satisfaction upon EFL’s products. 4. Its taste, quality proposition and world-class quality proposition system.

4. Strong consumer & product research Olper’s done a strong consumer & product research before and after launching the product. This has provided them the perfect launching pad to eventually emerge as a global player in the food industry. To develop its future portfolios, EFL has hired various global research partners like AC Nielsen, Mindshare, JWT Asiatic and MARS marketing and advertising agencies.

5. Third-Generation Plant EFL only, has the third-generation UHT milk plant in the country. EFL plant is the only plant in Pakistan that uses Bactofugetechnology to virtually eliminate bacteria and ensure premium quality and hygiene. Moreover, it is also setting up another milk processing plant in Central Punjab (Sahiwal) with an investment of Rs. 2 billion (US $ 33 million).

Weaknesses

1. Olwell TVC

Olwell ad which is based on Western life style, ENGRO foods brand management showed a man who put off his clothes & remain just in his undergarments, or half nude lady in a cat walk or men admiring the figures of a lady in mix gender health club. In this ad they are creating associations with the brand through the stripes, which is a highlight of Olwell packaging. Half naked people have been shown with tattoos of the same stripes in order to show that they are loyal consumers of Olwell. Also, the talent, situations and locations connects well with the ad to give Olwell a premium positioning. The brilliant marketing people at ENGRO Foods failed to analyze is that the market they are targeted the ad on, is Pakistan, where practicing Muslims reside, who have strong religious beliefs. When making the ad, the brand managers were focused on, making an ad that should give the brand the most premium look and feel amongst the target consumers but on the other hand they were least bothered about the ethics, religious beliefs and cultural values.

2. Owning Red Color

The company has not owned the color red like Nestle has a green Milkpak; Haleeb has a blue carton etc. This may create problems because when a consumer enters a grocery shop, then he/she might have problems in recalling the brand because there is no color association attached to Olper’s. The company may need to find a suitable color in which to focus its upcoming marketing strategies.

3. Low Quality Milk

EFL is not having its own dairy farms; it largely collects loose milk from farmers & gwalas through its 40 milk collection centers, which sometimes is of low quality and impure because they add vegetable oil to milk to get higher prices.

4. Packaging

EFL is dependent upon Tetra Pak for the packaging of its entire dairy products. Tetra Pak is the only option available to Olper’s for packaging because it is having monopoly in the packaging sector in Pakistan. Due to this reason, Tetra Pak can charge them higher and it could increase the production costs.

5. Milk collection & distribution costs

EFL’s 34 out of 40 milk-collection centers are located in Punjab, whereas its only milk processing facility is situated near Sukkhur (Sindh). It increases the milk collection &distribution costs; and also increases the chances of milk getting spoiled because of increased travelling time.

6. Narrow brand portfolio

It has been more than a year now, when EFL launched its first dairy product, Olper’s Milk on March20, 2006. But EFL’s brand portfolio still consists of just 3 products i.e. Olper’s Milk, Olwell Milk and Olper’s Cream. Whereas its competitors like Nestle and Haleeb Foods have a much diversified line of dairy products.

Opportunities

1. Increased funding by Government

Government has decided to increase farmers’ funding. This is an opportunity for ENGRO foods because previously due to weather conditions and other reasons there was lots of wastage of milk but now that can be reduced as farmers will be better able to store milk for longer time periods.

2. Increased consumption of PLM

Competition may create opportunities for the company because each competitor in the milk industry wants to increase penetration of processed liquid milk and so they will create awareness for consumers through different advertising media. This will ensure the increase in the consumption of processed milk instead of lose milk and so will in turn lead to increase in sales for the company. Therefore there will be an opportunity for accelerated growth.

3. Awareness

Growing dissatisfaction with loose milk and increasing awareness about health and hygiene issues have led to increased processed milk consumption.

4. Third largest producer of milk

Pakistan is the Third largest producer of milk in the world with a total production of 32 billion liter of milk a year, whose value is more than that of the combined value of wheat and cotton, from a total herd size of 50 million milch animals (buffaloes and cows). Livestock accounts for 46.8 percent of agricultural value added and about 10.8 percent of the GDP. Milk is the largest commodity from the livestock sector accounting for 51 percent of the total value of the sector. Due to the steps taken by the government and private sector, country’s annual milk production is expected to grow at an additional 3 billion litres in the next few years. This is quite an opportunity for ENGRO foods as there is lot of growth in this part of the sector.

Threats

1. Competition

Competition may pose a threat because the company will have to maintain its leadership in an expanding market so that it doesn’t lose its market share to its competitors. For Olper’s it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb. These brands have been in the milk industry far too long and have left a mark in the minds of consumers in terms of quality. Competition seems to be getting tougher as a result of new players entering the dairy market.

2. Perceptions and Price Differentials

Consumers’ perceptions and price differentials can cause a threat for the company. It is important that Olper’s comes up to the expectations of the customers and fulfills its conformance quality that is the company meets its promised specifications. Consumer’s preferences change with time and prices might create certain barriers in terms of the profit margins for Olper’s. For example, lose milk is still cheaper than packaged milk and that is also one factor that people still prefer to buy lose milk.

MACROENVIRONMENT

Economic Factors

Inflation rate of Pakistan for the current fiscal year has grown to 7 percent. This thing is really hurting the purchasing power of Pakistani consumers. PLM which is already considered as more costly compared to open milk is becoming out of reach of general public. As a result, there is an increased pressure on PLM companies to either decrease their prices or at least keep prices stable. Moreover, packaged milk industry which each year pays millions of taxes is not being given any relief in terms of taxes by the government. Competition is also increasing with the entrance of new domestic players in the dairy and food sector and plans to increase investments by the already established companies. Nirala, good milk, Pakola are the few names which have recently introduced their dairy product lines in the market. Major textile groups are also diversifying into dairy and livestock business and some of them have even acquired lands to start their business. Leading industrial groups such as Jamal Din Wali Sugar Mills, Dewan Group of Industries and ShakarGanj Sugar Mills have already made substantial investments in dairy & livestock sectors. In March this year, Nestle Pakistan opened a state-of-the-art milk processing facility in Kabirwala, Punjab. The plant, Nestlé’s largest milk reception facility in the world has a processing capacity of 2 million litres of milk per day.

Socio-Cultural Factors

In order to make a noticeable increase in penetration, many challenges and perceptions still have to be overcome by the PLMCs. The least important one, perhaps, is tradition. Milk, even amongst the most urbanised consumers, is synonymous with the early arrival of the doodhwala (milkman) at their home on his trusty bicycle (now replaced by a motorbike), reinforcing the impression that the milk is fresh, natural and straight from the cow. And it is this perception that only loose milk is fresh, and therefore healthy and preservative-free, that has to be overcome, if increased penetration is to occur at a substantial rate. Over the years, all PLMCs, but especially the two older players, Nestle and Haleeb, as well as Tetra Pak (the company that packages the processed milk) have been making active efforts to convince loose milk users to switch to processed milk. In the last six years, Tetra Pak has launched three major campaigns aimed at changing consumer perceptions. Last year, Tetra Pak’s third campaign, WohiDhoodhAurKya?

(Milk, What Else?)addressed the misconception that processed and packaged milk has preservatives. The campaign talked about the benefits of Tetra Pak’s six-layered packaging material and innovative technology that keeps milk safe for a long time. The highlight of the campaign was the introduction of a buffalo character called, Moomoo, who explained why UHT milk stays safe and hygiene for a long time in a Tetra Pak carton. Despite these marketing endeavours, perceptions cannot change overnight; this requires patience and continuous investment to educate consumers on the benefits of packaged milk. Every product’s lifecycle consists of an introductory phase, growth phase and maturity phase. It takes time to change attitudes, especially in a culture where the concept of fresh milk is healthier option. Another hurdle in converting loose milk users to processed liquid milk is price. In Punjab, because most dairy farms are based there, loose milk is cheap at approximately Rs 20 per liter, while processed milk is priced at approximately Rs 38 per liter. In Sindh, however, the price differential between loose (Rs 28) and processed milk (Rs 38) is only Rs 10. As a result of price considerations, most PLMCs have not increased prices in the last 5 years. Moreover, Nestle and Haleeb have introduced smaller packages to cater to consumers with limited cash flows, although there is a convenience factor at play here as well.

Technological Factors

In year 2005, the Ministry of Industries and Production established Dairy Pakistan Company on the lines and model of Dairy Australia. The main objectives of the company are as under: a. To promote milk and other value added dairy products in the domestic as well as international markets. b. To promote development and up-gradation of dairy supply chain in Pakistan by supporting and facilitating the farmers, processors and other stakeholders across the value chain. c. To support dairy sector growth by way of supporting and facilitating business development services for the enterprises across the dairy value chain. d. To initiate and support interventions across the dairy value chain to enhance sector competitiveness through innovations and research. e. To promote technology development, transfer, assimilation, streamlining, acquiring and/or up-gradation across dairy value chain by undertaking new initiatives. f. To help introduce international best management practices for better productivity and operational efficiencies. g. To promote training and skills development of human resources associated with the dairy sector.

h. To help create enabling/supporting/conducive business environment for enterprises operating in the dairy sector and propose new rules/regulations/bye-laws/standards for providing a level playing field and conducive regulatory environment for the development of sector and propose amendments thereof in any existing rules/regulations/bye-laws/standard in the sector and bring local industry in consonance with international standards.

Different initiatives taken by the company, so far, to bring about a White Revolution in the country are:

a) Farm Cooling Tanks Loan Scheme

A mechanism for the operation of Farm Cooling Tank Loan Scheme has been proposed and guidelines are being developed for applicants. They will include standards for quality and hygiene for installation of the tanks and also details on the testing of the milk being received for composition and quality.

b) Model Farms

The targets for this project are to establish 50 farms by the end of June 2006 and 100 by the end of 2006. An Australian consultant is currently visiting Pakistan for this purpose. First 14 farms in Okara, Punjab have been formally established as model farms. These farms are generally of medium size and all supply to Nestle. One model farm has been established in Sindh. Efforts have been made to identify clusters of farms to be established as model farms at stage two. It is proposed to work with one group of small farmers who are currently part of Idara-e-Kissan / Halla and a further group of farmers in Sindh who currently supply to Engro. In stage three, it is proposed to identify further farms with probable extension of the programme to NWFP.

c) Other Policy Interventions

Draft Quality Standards are being worked on by a SWOG group who has provided the first draft paper for discussion with stakeholders. It is necessary to open a dialogue with PSQCA, PSI and other interested parties to progress the establishment of Food Safety Standards. Work is also being undertaken to establish a case for zero rating Dairy Products for sales tax.

PRODUCT

Olper’s Milk Launched on March 20, 2006, Olper’s milk is EFL’s standardized and homogenized pure UHT (Ultra heat treated) milk with 3.5 % fat and 8.9 % solid non-fats. It is EFL’s premier brand, and the choice of quality-conscious consumers who only go for the best. It is available in easy-to-open, 6-layered Tetra Pak Brick Aseptic red packaging and comes with a 3 months shelf life.

Shipping Units 1 Litre (1000 ml ) : 12 packs per carton ½ Litre (500 ml) : 12 packs per shrink-wrapped tray ¼ Litre (250 ml) : 27 packs per shrink-wrapped tray

Olper’s Cream The premium cream processed hygienically from pure fresh milk, Olper’s Cream is luxuriously rich in its thickness & nutritional value. It promises the richest & scrumptious assortment of tempting toppings, delicious desserts and creamiest coffee with its unique taste, also great for eating with bread etc. It was launched on September, 2006 and comes in 6-layered Tetra Pak Brick aseptic purple color packaging with 6 months shelf life.

Shipping Units¼ Litre (250 ml) : 27 packs per shrink-wrapped tray

Olwell Hi-Cal Lo-Fat (HCFL) Milk Launched on December 15, 2006, Olwell is a low-fat, high-calcium milk with the richness of pure milk. It is an ideal choice for weight-watchers and heart patients. It is also high in calcium content, which prevents osteoporosis. Packed in 6-layered Tetra Pak Brick Aseptic red packaging with easy-to-open plastic cap, it comes with a 3 months shelf life.

Shipping Units 1 Litre (1000 ml ) : 12 packs per carton ½ Litre (500 ml) : 12 packs per shrink-wrapped tray

PLACEMENT & DISTRIBUTION

Engro Foods did exactly that. They used their decades of PR with farmers and used it to provide world-class supply-chain management for delivering the ultimate quality milk in Pakistan. Having kicked off simultaneously in 20 cities across Pakistan, the launch has been ambitious and currently Olper’s is available in 80 cities across Pakistan. It reflects the company’s intention to become a big player in the industry, both on a national and international level. Engro Foods Limited has its own dales and distribution network. EFL has divided Pakistan into five regions for milk distribution namely: Karachi, Lahore, Islamabad, Peshawar and Multan. Due to an appealing color scheme, which stands out in the clutter and thanks to the EFL’s strong relationship building and special discounts to retail outlets, Olper’s has gained a proper shelf placement in the presence of competitors like Nestle and Haleeb .

Company appoints distributors to reduce risk factors, investment risk, ware house risk and cost of transport.

“In order to succeed, you should ALWAYS capitalize on your STRENGHTS and NEVER on your COMPETITOR’S WEAKNESS!”

EFL did exactly that. They used their decades of PR with farmers and used it to provide world-class supply-chain management for delivering the ultimate quality milk in Pakistan.

Having kicked off simultaneously in 20 cities across Pakistan, the launch has been ambitious and currently Olper’s is available in 80 cities across Pakistan. It reflects the company’s intention to become a big player in the industry, both on a national and international level.

EFL has its own dale and distribution network. EFL has divided Pakistan into five regions of milk distribution namely: Karachi, Lahore, Islamabad, Multan and Peshawar. Due to an appealing color scheme, which stands out in the clutter and thanks to EFL’s strong relationship building and special discounts to retail outlets, Olpers’s has gained a proper shelf placement in the presence of competitors like Nestle and Haleeb.

EFL DISTRIBUTION CHANNEL

7 Distributors (General Trade).

ICA (International Chain Account).

Makro (10% of total sales).

Metro (10% of total sales).

Food Services.

2 Distributors (10% of total sales).

PRICE

EFL IS pursuing the competitive pricing strategy for its products. In competitive pricing the price of the product is determined considering the price of major competitors like Nestle, Haleeb etc.

Olper’s Milk Size (ml) Price (Rs.)

Olper’s Nestle Milkpak

Haleeb Haleeb Dairy Queen

1000 38 38 38 32500 22 22 22 18250 12 12 12 10

Olper’s Cream Size (ml) Price (Rs.)Olper’s Cream Nestle Haleeb Cream

250 28 --- 28

Olwell Hi-Cal Lo-Fat (HFCL) Milk Size (ml)

Price (Rs.)

Olwell Nestle NesVita HaleebSkimz1000 45 45 ---500 25 25 25

PROMOTION & ADVERTISING

Olper’s launch was, perhaps one of the most aggressive as far as processed liquid milk (PLM) is concerned, with TVCs, print ads, radio commercials, billboards and plenty of BTL (below the line) activities including direct consumer and shop branding activities. Due to this aggressive marketing campaign, the competition seems to be getting tougher. This can be gauged from the fact that Nestle re-launched its product packaging and marketing campaign just before Olper’s launch. One can also a far greater number of milk advertising billboards in Multan city than seen earlier like of Nirala, good milk and Nestle.

Olper’s Milk Media mix for Olper’s milk includes TV, print, outdoor, radio & BTL activities. Olper’s considers radio still an effective medium because A & B house wives still listen to the radio on a daily basis.

COMPETITOR

Olper’s milk is competing with haleeb milk, nestle milk pak and good milk etc. these are its industrial competitors. It does not have market competitors. According to competitor analysis olper’s milk falls in challenger.

Factor Olper’s

milk

Nestle

milk pak

Haleeb Good

milk

Products Milk Milk Milk Milk

Quality High

Quality

High

Quality

High

Quality average

Quality

ExpertiseUHT Drinks Drinks Milk Pack,

Juices

Pack

Coverage Pakistan Pakistan Pakistan Pakistan,

Appearan

ce

Very

Attractive

Attractive Less

Attractive

Average

Advertisin

g

T.V Ads,

radio,

outdoor,

newspaper

,

T.V Ads,

radio,

Newspapers

, Billboards

T.V ads,

radio,

newspaper

, billboards

T.V ads,

radio, but

less

Competitors & their Market Share

Nestle 41%

Haleeb 30%

Olper’s 21%

Others (good milk) 8%

BUILDING LOYALTY

Creating a long tight connection to customers is the dream of any marketer

& key to long term marketing success. Olper’s build loyalty of customers

towards its products in the following way:

As compared to Milkpak and Haleeb Olper’s have advantage over its

touch points which create a strong loyalty of customers towards

Olper’s

They have adopted to gather the feedback and build strong relation

with their customers is that they have asked their customers to

contact and give suggestions that are listened.

Olper’s works in the heart of its customers by knowing what is special

for them. Like in Ramazan Olper’s introduce and promote the

traditional Ramadan theme so that the customers who value their

religious heritage they are more attracted and so that in long term

they are much more loyal customers towards the brand.

MARKETING STRATEGIES ADOPTED

1. Float Activity

One way that Engro foods and olpers have chosen to interact with their

customer is Float Activity. Olpers have been launching promotional activities

all the time and according to them this float activity proved to be very

effective to keep in touch with their customers.

2. Road Shows

In the summer of 2009, when Engro foods launched their new product line of

Dairy Ice Cream Omore initially in Lahore the whole city was decorated with

different road side banners and place cards. This is a traditional Engro food

way to keep in touch with their customer and also to promote their new

product. According to Olpers Road shows are a very easy yet effective way to

keep in touch with customers.

3. Rural Melas

Since Pakistan is a country with most of its population still living in rural

areas, Olpers decided to reach those potential consumers with a different

approach and they arranged different rural side Melas in which they can

easily state their point and make the potential customers a loyal aware of

the product and also to get the feed back out of the customers to make sure

if there are any lags in the product.

4. Chain Store Promotions

Another 1 2 1 way of marketing technique that Engro foods have adopted to

create effective touch point with their customer is by putting their brand in

all the chain store in Pakistan in this way people can have access easily to

the product and they do not have to look for the product.

EFFECTS OF MARKETING

Building customer based brand equity

Brand equity can be defined as the effects that marketing

activities have on a particular brand.

There are different types of brand equity but the one that the

marketers are most concerned about the customer-based brand

equity.

Customer-based brand equity is an important element that

marketers have to keep in mind before marketing any brand. There

are different ways of building, measuring and managing customer-

based brand equity.

ENGRO, although a separate name from Olper’s has a very strong

impact on the sales of Olper’s. It has added to the credibility of

Olper’s.

People know ENGRO because of its well established reputation in

fertilization sector. Therefore, they hold a strong association in their

minds for Olper’s as well.

There are different nodes that connect ENGRO to Olper’s in the

customers’ minds.

The ads for Olper’s do not show any link with ENGRO foods but the

HR managers keep mentioning ENGRO in every press release of

Olper’s. .that is how people have associated Olper’s with ENGRO.

The sales figure for the first eight months of Olper’s launch showed

a number in billions. This is evidence that people have accepted the

brand and liked it.

Thus marketers have been successful in creating customer-based

brand equity for Olper’s.

This could be due to strong associations with ENGRO in the minds of

customers.

Olper’s has been aggressively promoted which is why customers

can recognize it easily.

The red color and the shelf space that the brand commands make it

even more prominent from the rest of the brands.

Although Olper’s product related attributes, such as white color,

hygienic and processed milk, are quite similar to other brands such

as Nestle and Haleeb, while the non-product related attributes such

as the packaging of red color and usage imagery that is portrayed

in every advertisement of Olper’s, can be distinguished from the

competitors’ brands. Olper’s is promoted with the viewpoint that the

milk is meant for all-purposes. This obviously shows the usage

imagery of the brand.

When it comes to the benefits that customers look for in milk are

clean processed milk that is good for health and can be used for all

purposes.

Olper’s provides its customers with functional and experiential

benefits.

The functional benefits include healthy bones, high calcium, good

taste, while experiential benefits are that every morning starts with

Olper’s milk that is the tag line subah Bakhair Zindagi.

Other experiential benefit is the variety that has come into the milk

sector due to another brand entering the market.

People can now choose from a number of brands for milk and

especially the variety seekers will definitely want another brand to

enter the market.

If, in the beginning, consumers are not willing to buy the brand then

it might be due to such factors as low involvement in that product

category or due to brand loyalty towards brands like Nestle and

Haleeb. However, the color of packaging in the grocery stores may

attract customers enough to make them buy it, thus the brand

attitude In this case helped the brand to form the basis for customer

behavior.

Olper’s has favorable, strong and unique brand associations in

customers’ minds. It is favorable because milk is a need and clean

hygienic milk that is free of bacteria and germs is what conscious

customers are looking for.

Usually people thin Olper’s as a sub brand of ENGRO foods. Due to

this reason customers perceive Olper’s’ as a high quality brand that

will come up to their expectations.

Olper’s itself is a very distinctive name that is easy to remember

and one that will stay in the memory for a long period of time.

MARKETING OBJECTIVES

Need Satisfying

To provide good, nutritious and good for health, bones and nutritious

packaged drinking milk.

To provide low-fat milk that is high in nutritious.

To provide all purpose milk, that can be used I many forms.

Long & Short Term Sales Target

To gain a bigger market share at the end of 2010.

To be the market leader in the packaged milk industry.

(22% to 40%: milk pak’s )

SUGGESSTIONS

Olper’s should organized integrated awareness program about UHT

treated milk and processed milk, how it is different from un-processed

milk. As the most people still think that “doodh wala” is the source of

pure and nutritious milk.

The Olper’s has opportunity with its current brand. If Milkpak has

drinking market and Haleeb has liquid tea whitener market, Olper’s has

an opportunity to capture the yogurt market. Because Nestle and

Haleeb are making the line-extension mistake by putting their names

on its yogurts (either). For that, Olper’s should launch a new brand

(with a new brand name, of course) and position it as special yogurt

brand.

Nestle and ,may be, Haleeb are working good with their yogurt

because of two reasons:

a) Competition is weak.

b) There is no specialized yogurt brand in Pakistani marketplace.

CONCLUSION

ENGRO FOODS LIMITED is the subsidiary of ENGRO group. Their

brands are one of the top brands in Pakistan in the milk sector.

Their products OLPERS MILK, OLPERS CREAM, AWSUM FRUIT

MILK, TARANG TEA and OMORE ICE CREAM purchased heavily by

customers. This is due to marketing Strategies, Promotion, price

and quality of their products. Above mentioned are the Marketing

Strategies of their products due to which there Revenues

increases day by day. They provide the customers what they

want, their distribution channels are vast and their prices are

nominal. These are Reasons for the success of their brands.

REFERNCES

1. www.olpers.com.pk

2. www.engrofood.com.pk

3. www.engrochemicals.com

5. www.google.com

6. www.wikipedia.com

7. Marketing Management by Kotler 11th Edition.

8. Email Questionairre

9. HASSAN RAZA ( Area manager) 0302 8545796

APENDIX

QUESTIONAIRE

Q.1: In last 2 years how many products your organization has launched?ANS: Last two years alfruit, owsum, omore, tarang.

Q.2: What are the number of products you launched since your entrance in market?ANS: olpers (cream,milk )tarang(liquid,cream,powder)owsum.alfruit,tarqa asli ghee,omore,alwell(for diet),different kinds of clorious product(milk)..

Q.3: What is your core competitive advantage over your competitor? ANS: Aggressive style of business: launching more products in short time.

Q.4 What is the % discount rates you give to your supplier, retailer and wholesaler?ANS: the discount rate for retailer and wholesaler is according to market.  And if target achieved extra benefit will be given to them.

Q.5: What is the core strategy behind the advertising of your products?ANS: To target the audience e.g owsum for children, olpers for all purpose, tarang for sweet lovers like Punjabi’s.

Q.6: How vast are your distribution channels in Pakistan? ANS: over 500+ distribution channels covering all over Pakistan.

Q.7: Does you have your own transportation to take product to outlets or you outsourced the transportation system?ANS: all transportation is outsourced.

Q.8 What are your different marketing strategies for the promotion of product?ANS: 

1. Targeting audience2.nominal price

3.good discount to distributor when they achieve the target

Q.9 How you make profitable relationship with customer?ANS : we visit city school and Becon house for profitable relationship programs of olpers and tarang house full programs are organized all over Pakistan to attract the house wife to use our product

Q.10 What are your target markets? ANS: Pakistan, Afghanistan and Oman (and for all ages) Teenagers, children and old persons as well.

Q.11 Are there any customer relation centre for complaints?ANS: no customer complaint centre but we have taken feedback through distributors. retailers and local shopkeepers and then try to solve them and make product as good as possible.